liquity.org Reviews

https://liquity.org redirected to https//www.liquity.org during the time we crawled it. Liquity is a decentralized borrowing protocol that allows users to draw 0% interest loans against Ether used as collateral. The loans are paid out in LUSD, a USD-pegged stablecoin, and need to maintain a minimum collateral ratio of only 110%. In addition to the collateral, the loans are secured by a stability pool containing LUSD and by fellow borrowers collectively acting as guarantors of last resort. The protocol is non-custodial, immutable, and governance-free. It’s accessed through third-party frontends, and the core team building the protocol does not operate a frontend. Liquity offers the best borrowing conditions on the market with the main benefits being:

0% interest rate
A collateral ratio of just 110%
Governance-free – all operations are algorithmic and fully automated
Directly redeemable – LUSD can be redeemed at face value for the underlying collateral, always and at any time
Censorship-resistant – the protocol is controlled by nobody

There are two different ways to generate revenue using Liquity:

Deposit LUSD to the stability pool and earn liquidation gains and LQTY rewards
Stake LQTY and earn the revenue from issuance fees (in LUSD) and redemption fees (in ETH)

Liquity has been praised for its resilience and trustless design, particularly during market volatility. It’s considered a valuable tool in the decentralized finance (DeFi) space, offering stability and predictability in borrowing and lending. Liquity’s decentralized and algorithmic nature aligns with the principles of DeFi, providing users with more control over their financial activities and reducing reliance on centralized entities. As with any DeFi protocol, users should be aware of the inherent risks and consider factors such as market conditions, smart contract security, and overall protocol health before participating.

Overall, Liquity has gained recognition for its innovative approach to decentralized borrowing and lending, and its unique features have positioned it as a notable player in the DeFi ecosystem.”

the reasons behind this review :
Decentralized borrowing protocol, 0% interest loans against Ether, Loans paid out in LUSD (USD-pegged stablecoin), Minimum collateral ratio of 110%, Secured by a stability pool and fellow borrowers, Non-custodial, immutable, and governance-free, Accessed through third-party frontends, Offers the best borrowing conditions on the market, Revenue generation through stability pool and LQTY staking, Praised for resilience and trustless design, Valuable tool in the DeFi space, Aligns with DeFi principles, Provides more control over financial activities, Reduces reliance on centralized entities, Users should be aware of inherent risks, Consider market conditions and protocol health